Organizational ethics

ETHICS AND ETHICAL BEHAVORIAL

IN ORGANIZATIONS

“Character doesn’t stay at home when we go to work”

• How can organizations maintain high standards of ethical conduct?

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Moral Reasoning

 Moral Reasoning
 Reasons for various ethical practices
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Ethical Dilemma

 Ethical Dilemma
 A situation that, although offering potential
benefits, is unethical.
 One of the most common ethical dilemmas
occurs when a company’s culture conflicts
with an employee’s personal ethics.
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MANAGEMENT TIPS

 Checklist for dealing with ethical dilemmas

 Step 1. Recognize the ethical dilemma.
 Step 2. Get the facts.
 Step 3. Identify your options.
 Step 4. Test each option: Is it legal? Is it right? Is it
beneficial?
 Step 5. Decide which option to follow.
 Step 6. Ask the “Spotlight Questions”: To double
check your decision.
 “How would I feel if my family found out about my
decision?”
 “How would I feel if the local newspaper printed my
decision?”
 Step 7. Take action.
Some facts about

Ethics and Work

The Wall Street Journal reports:

• 36% of workers calling in sick are lying.
• 35% keep quiet about co-worker misconduct.
• 12% of job resumes contain falsehoods.
• Managers are more likely than other workers
to report wrongdoing.
• Managers with 0–3 years experience feel
most pressure to violate personal ethics.
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Rationalizing Unethical Behavior

 Four reasons:
 1. “What I’m doing is not really illegal.”
 2. “My behavior is in everyone’s best
interests.”
 3. “Nobody will ever find out what I’ve
done.”
 4. “The organization will protect me.”
Factors influencing

Organizational Ethics
 Personal and contextual factors influence ethical
conduct
 Training in ethical decision making may improve
ethical conduct
 Protection of whistleblowers may encourage
ethical conduct
 Managers acting as positive role models may
motivate others toward ethical conduct
 Formal codes of ethics set standards for ethical
conduct
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Ethics Training can help employees understand

corporate culture & expectations ….
 Ethics Training
 Seeks to help people understand the ethical
aspects of decision making and to
incorporate high ethical standards into their
daily behavior.
 Code of Ethics
 A formal statement of values and ethical
standards
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Ethics Training

 Spotlight Questions
 Highlight the risk of public exposure of one’s
actions:
“How would I feel if my family found out about my
decision?”
How would I feel if the local newspaper printed my
decision?
These are good gut feel questions. If it doesn’t feel good, don’t do it.
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Whistleblowers

 Whistleblowers
 Persons who expose organizational
misdeeds in order to preserve ethical
standards and protect against wasteful,
harmful, or illegal acts.
 Many whistleblowers were / are fired for their
actions.
 State and federal laws now offer some
protection
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Managers

 Management Behavior
 In order to have a positive impact on ethical
conduct throughout an organization, those at
the top must walk the talk.